Charles Schwab & Co. launched the "Talk to Chuck" campaign to address declining brand scores and customer dissatisfaction. The campaign featured Charles Schwab directly advising customers of the discount broker at reduced commission prices. It targeted the mass affluent demographic of 35-54 year olds with $50,000-$2 million in investable assets. Testing in select cities showed increased brand awareness, consideration of opening new accounts, and perceptions of value for Schwab. Based on early success, the budget request for further campaign expansion in 2006 should be supported.

1. Charles Schwab & Co. Talk To Chuck Campaign
Submitted by:
RAHUL CHANDA
160103106

2. U.S. FINANCIAL INDUSTRY OVERVIEW
 Compromised of three major sectors: Banking, Securities & Commodities, and Insurance
 Total client asset net worth of the industry is US$49 trillion
 Price competition intensive market due to evolution of Internet and Gramm-Leach-Bliley Act,1999
 Major players are:
 Full Commission Brokers: Merill Lynch, Ameritrade
 Discount Brokers: Charles Schwab & Co, TD Waterhouse and E*Trade
 Mutual Fund houses: Fidelity
 Shift in business of charging commissions on individual brokerages to service-based or asset
management fees

3. BRIEF HISTORY ON CHARLES SCHWAB & CO
1971:
Charles
Schwab
& Co is
founded
1975:
Becomes
the first
discount
self-
service
brokera
ge firm
1983:
Acquired
by Bank
of
America
1987:
Firm
bought
back
from
Bank of
America
1995:
one
million
accounts
reached
1997:
Offered
lowest
equity
trade
price
“King of
Online
Brokers”
1998:
2.2
million
accounts
reached
2004:
Broaden
business
through
Schwab
Investor
Services,
Schwab
Institutio
nal and
US Trust

4. SCHWAB’S BUSINESSES
Schwab Investor
Services
• Served to company’s
retail investors
Schwab Institutional
• Served independent fee-
based advisor firms
U.S. Trust
• Served affluent
individuals, families and
institutions

5. SCHWAB’S CLIENT SEGMENTATION
Investment
Attitudes:
Depends on
self-confidence
on asset
management
Life Stage:
Different aged
customers have
different
financial
objectives
Investment
Style:
Depends on
consumer’s
receptivity to
Hidden
Assets:
Depends on the
investable
of consumer
invested in
Schwab

6. PAIN POINTS
Client satisfaction gap
Excessive broker
commission on stock
trades
Overwhelming mutual
fund selection options
Stock recommendation-
ion based on opinion

7. REASONS FOR DEVELOPMENT OF TTC CAMPAIGN
 The firm performed poorly on Brand Asset
Valuator (BAV) study
 The brand scored low on differentiation since it
was no more the leading-edge discount broker
 Even brand relevance and esteem showed a
declining trend
 The company was out on customers
7
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
8
8.1
2000.5 2001 2001.5 2002 2002.5 2003 2003.5 2004 2004.5 2005 2005.5
Active Client Account(millions)

8. SCORES ON MOMENTUM & INNOVATION
11
73
16
MOMENTUM%
On the Way Up Company holding steady On the way down
10
67
23
INNOVATION%
More Innovative than ever
Innovation holding steady
Less Innovative than it used to be

9. MARKET DETAILS
• Target Market
• Mass Affluent
• 35 – 54 years old
• US$50,000 million to US$2million investable asset
• 8% of U.S. population
• 20% of U.S. investors
• Target market is confident and financially concerned
• Test Market
• 26 markets with at least 1% of U.S. population
• 6 cities- Chicago, Denver, Houston, Washington D.C. ,
Phoenix & Dallas.
• No headquarters on any company
• Strong field sales presence
• Match able from BDI/CDI perspective
• Geographic dispersion
• Demographic composition
• Efficient and affordable Media

10. COPY STRATEGY
Consumer Benefit: Customers can directly connect to Chuck for any investment related advice at discounted brokers’ price
Reasons Why: Discount brokers offered little assistance beyond the execution of transaction, thereby creating confusion and dissent
Supporting Evidence: Chuck’s high level of involvement with field representatives to make sure they can sell Talk To Chuck well
Tone of Voice: Communicate Chuck’s core value and make field representatives build close relationship with the customers
Target: Target the 35-54 years age group with an investable amount of US$50000 to US$ 2 million and having a confident and financially concerned attitude

11. TTC TEST MARKET EFFECTIVENESS
• Test markets; Market received ads – Chicago, Denver, and Houston
• Control markets; Washington, Phoenix and Dallas
• All Test Markets received the same types of Marketing Mix and tests were conducted in both low sales and high sales returns
periods
• Observations:
• Consideration to open new accounts was majorly observed in Denver
• Popularity and value for money perception are becoming more positive in Chicago
• Brand awareness, correct offers and brand momentum was gained in Houston
• Schwab ranked in top 3 in all financial service companies
• Schwab reported a 5 % Reduction in Customer Attrition between April - September 2005

12. WOULD YOU SUPPORT SAEGER’S TTC BUDGET REQUEST FOR 2006
 Yes
 Reasons:
 YoY growth:
 6% on revenue
 153% on net income
 QoQ (IV) growth:
 11% on revenue
 253% on net income

13. THANK YOU